Mexico gains 2.3%;Brazil up after interest-rate cut

SAN FRANCISCO (MarketWatch) -- Mexican and Brazilian stocks finished higher Thursday, tracking gains in other emerging markets as investors worked on recovering from last week's global financial shakeup.

In Mexico, the benchmark IPC index of 35 most-traded issues surged or 589, or 2.3%, to 26, 773.78. It was the IPC's highest close since the 5.8% plunge 10 days ago, its biggest drop in nearly seven years.

The local market has been very volatile in recent weeks, bandied about by activity in global markets, and a trader said that trend would likely remain in place despite the rally.

The B shares of airport operator Grupo Aeroportuario del Pacifico
PAC, +1.96%
jumped 4.3% after the company reported that its February passenger traffic grew 6.2%, led by domestic traffic.

Meanwhile, Brazilian shares rose after the central bank cut its base interest rate late Wednesday. The Selic rate now stands at 12.75%, down from 13%.

The broader market, as measured by the benchmark Bovespa stocks index, closed up 799 points, or 1.9%, at 43,465.83.

Brazil's blue chips rose. Mining giant Companhia Vale do Rio Doce, or CVRD,
RIO, -0.91%
rose 0.8%. The company's chief financial officer said Thursday that CVRD will complete the refinancing of a bridge loan used to fund the purchase of Canadian nickel miner Inco (N) in the first half of 2007.

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